Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said, “I am delighted to report yet another very strong quarter. We witnessed a strong growth of 14.5% in constant currency driven by growth across Aerospace and Defense, Transportation, Industrial, Energy and Natural Resources (IENR) and Semiconductor, IOT and Analytics (SIA) business units. On a QoQ basis we witnessed a growth of 6.5% in constant currency. The services business witnessed a growth of 3.5% in constant currency while DLM business witnessed a growth of 27%. I am especially happy to report the strong performance in the DLM business, which I am certain is a reflection of the potential for growth and strategic synergy that exists in the business.

With focus on driving execution on AGILE strategy our rigor on solutions development continues. This quarter, Cyient Systems and Solutions (CSS), our JV with BlueBird Aerosystems, won a bid from an Indian Defence unit to supply SpyLite HAASS systems for high altitude surveillance. As part of this bid CSS will supply two systems through the year. Our New Business Accelerator (NBA) Program focused on technology driven solutions continues to make good progress with all projects on track for commercial development. The NBA is expected to accelerate Cyient’s EPS growth over the next few years.

This quarter we were recognized as the Top IT/ITES Exporter in the Rs 1,000 crore export category by HYSEA. Our Chairman, Mr. BVR Mohan Reddy was also conferred with a Lifetime Achievement Award by HYSEA. Cyient was also named as one of the Top 20 most promising Aerospace Tech Solutions Providers by CIO Review. We were selected for our ability to illustrate the functionality of services, systems, and solutions, and for being at the forefront of impacting the aerospace market. Cyient was identified as a “Major Contender” in the Everest Group Verification & Validation engineering services Peak Matrix 2018 in the quarter.

Our outlook for FY 19 continues to remain strong. We expect a double digit growth in our services business, our DLM business will grow in high double digits. We also expect double digit growth in operating profit through the year. Our operating margin is expected to marginally improve through the year driven by operational improvements and upsides from exchange rates, some of which will be offset by wage hikes and investments we make through the year.

Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “I am pleased to share that we saw the highest-ever revenue ($168.9Mn), operating profit (?1,626Mn), FCF (?1,585Mn) and PAT (?1,271Mn) in Q2 FY19 for a quarter. Cyient is progressing well on another year of well-rounded growth in revenue, profit and cash with growth of 23.5% QoQ in operating profit along with the highest ever PAT growth of 54% QoQ (14% YoY). We also saw expansion of 151 bps QoQ in OPM and that of 212 bps QoQ in Services margin. Healthy conversion of Free Cash Flow to EBITDA at 72% has translated into a highest ever cash balance of $12Bn after payment of dividend. DSO is lower by 7 days QoQ at 82 days. We declared a interim dividend of ?6.0/share compared to ?5.0/share in Q2 FY18.

We remain deeply focussed on organic and inorganic strategic investments. We expect the momentum to continue in the next two quarters as well. Cyient will continue to focus on growth, improvement in operating margin, cash generation and thus maximizing the value for our shareholders.”

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